It is crucial that the EU response protect manufacturing capacity at home. Limiting its response to trade retaliation measures will not protect jobs. Instead, a dual approach is needed that combines investment to boost domestic demand and immediate measures to protect quality jobs, similar to those in the SURE instrument that was brought in during the COVID pandemic. 

With these tariffs, Trump is attempting to deliver a major blow to the European car industry at a time when the sector is experiencing certain issues. Through its Inflation Reduction Act, the USA had already moved to disadvantage car imports by modifying internal tax rules so that only vehicles assembled in North America are eligible for tax credits.

Esther Lynch, ETUC´s General Secretary, said:

“Failing to take measures to protect jobs would be a catastrophic mistake by the political leaders of the EU. Once manufacturing jobs are gone, they are extremely hard to bring back.

“The USA strategy to reshore manufacturing capacity is not breaking news. They have moved to using investments and incentives to create jobs for a number of years now.

“Yet the EU is currently focussed only on tit-for-tat trade retaliation. That won't save autoworkers' jobs. Investments and job saving measures are needed to maintain Europe’s manufacturing capacity.

“It is crucial that these jobs are safeguarded and future proofed. While the US is obsessed with a 'drill-baby-drill' approach of the past, EU must invest massively to get ahead on the technologies of the future. The automotive industry is central to that.

“Tackling the sector's calamitous prioritisation must be part of the solution. For years now, car manufacturers in Europe have been allowed to reduce investment in research and development and siphon off income to shareholder payouts instead.”

Judith Kirton-Darling, industriAll Europe´s General Secretary, said:

“Yesterday’s decision in Washington reinforces the urgency for a proactive and well-resourced European Industrial Plan for the automotive sector and its full value chain. This situation underscores the importance of Europe taking charge of its own industrial future.

"These tariffs are likely to be accompanied by further tariffs on other EU exports to the US in the coming days. Trade wars are not good for anyone – certainly not for the workers who are potentially put into competition with each other. We need sensible heads to prevail.

"By coincidence, industriAll Europe’s Executive Committee met today, and this allowed us to take a common stance as European industrial workers calling on the EU and European governments to ensure that jobs are safeguarded. Strategic autonomy and economic security must be priorities, not just aspirations.

"Europe needs to invest in its industries urgently – but we knew this before this trade conflict escalated. As we have been saying for months, now is the time to act. It is essential to securing our long term social stability and economic security."